15th Oct 2026 09:15
(Alliance News) - THG PLC on Thursday said it is on track for its first year of positive free cash flow since listing, as it reported higher sales for the year-to-date.
Shares in the Manchester, England-based retailer of beauty products and nutrition supplements rose 14% to 31.26 pence each on Thursday morning in London, though the stock remains down 29% over the past year.
In the third quarter, revenue edged up 0.9% on-year to GBP408.8 million and was up 1.5% on a continuing constant-currency basis. Revenue from the Nutrition business rose 3.7% to GBP152.4 million, while Beauty sales slipped 0.7% to GBP256.4 million.
According to THG, quarterly earnings reflected "the delayed dispatch into October of beauty advent sales made in September". THG sells Advent calendars containing fragrances, including under the Lookfantastic and K-Beauty brands.
THG also noted a more supportive backdrop for the protein powder business, thanks to a "significant correction" in prices of the main ingredient, whey concentrate with at least 80% protein content.
The external pricing index for the ingredient is down 20% since THG reported half-year results early last month, the company estimated, as a result of increased supply and product substitution.
In 2026 so far, total revenue is up 4.1% on-year to GBP1.24 billion, or up 5.2% on a constant-currency basis. Nutrition sales are up 6.7% to GBP480.9 million in the year-to-day, with Beauty sales also in growth, up 2.5% to GBP756.6 million.
THG expects growth to pick up in the final quarter of the year, and it said it is on track for its first year of positive free cash flow since its London stock market float back in 2020. It sees full-year free cash flow ranging from GBP25 million to GBP35 million, in line with consensus.
"This represents a significant milestone for THG and reflects the progress we have made in strengthening the group's financial position," noted Chief Executive Matthew Moulding on Thursday.
THG raised its guidance for annual earnings before interest, tax, depreciation and amortisation to GBP103 million, which is above market consensus and the company's previous forecast. In 2025, adjusted Ebitda was GBP76.6 million.
CEO Moulding said the momentum of a "a particularly strong first half" had carried through into the third quarter.
He hailed strategic progress for the company's brand, Myprotein, which has entered into partnerships with food and beverage chains such as Five Guys, Krispy Kreme and Caffe Nero.
"In THG Beauty, innovation remains central to our strategy. Initiatives including the YouTube Shopping Affiliate Programme and our AI Beauty Advisor demonstrate our commitment to remaining at the forefront of digital beauty commerce, embracing new technologies and changing consumer shopping behaviours," Moulding noted.
"Q4 is traditionally our busiest and most cash-generative quarter, and we enter this important trading period with confidence. With strong operational momentum, improving profitability and continued strategic progress across both divisions, we expect to deliver an acceleration in group revenue in Q4."
By Holly Munks, Alliance News reporter
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